Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
XRP investors recently took advantage of a price drop to massively accumulate the coin. As spotted by renowned on-chain analyst Ali Martinez, 1.80 billion XRP were purchased by market participants in recent times.
$1.75 emerges as key support for XRP
As per Ali, this large volume of XRP was acquired when the price fell to $1.75. He considers this level a new key support point for XRP going forward.
Notably, this will act as a support zone for XRP because when the price approaches $1.75, investors are likely to step in to prevent further declines.
The massive amount of XRP bought at this price level makes it a significantly strong support. Amid the current volatility in the broader crypto space, market participants are concerned about the price outlook of different assets.
XRP’s movement is not an exception, considering the high expectation for the coin after Ripple concluded its legal battle with the U.S. Securities and Exchange Commission (SEC). Most stakeholders had anticipated that the regulatory authority would proceed to immediately green-light the XRP ETF applications before it.
The thinking was that an approval might support a further bullish rally for XRP at the time. However, XRP has since dropped from the $3 level it was exchanging for and crashed to below $2.
The resilience it showed during previous market cycles has weakened, and a new support of $1.75 is what the coin has formed.
On a positive note, XRP has climbed from the $1.75 level and is pushing toward the $2 resistance mark. As of this writing, XRP was changing hands at $1.91, which represents a 2.43% increase in the last 24 hours. It earlier hit a high of $1.99 but faced rejection as it attempted to reclaim the $2 zone.
The rejection was likely due to the low volume of XRP, as trading volume has dipped by a significant 29% to $6.37 billion.
Can XRP break $2 resistance level?
As U.Today reported recently, within 48 hours, whale wallets dumped 200 million XRP valued at approximately $400 million on the market. This created an oversupply as it overwhelmed market demand.
Despite the crash below $2, XRP’s Bollinger Bands suggest that the bull structure remains relevant and could witness a rally. If the trading volume turns green from the current red zone, it might trigger an upward price movement for the asset.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team